Understanding Nebraska’s Net
Metering Law
NEBRASKA WIND WORKING GROUP
NOVEMBER 9, 2009
KRISTEN GOTTSCHALK
NEBRASKA RURAL ELECTRIC ASSOCIATION
PURPA
 Public Utilities Regulatory Policy Act
 1978
 Encourage renewable energy generation
 Paired with numerous incentive programs
 Requires interconnection to distribution system
 Qualified Renewable Generation Facilities Up to 80 MW
 PURPA Qualified—simple process
 Not net metering
 PURPA allowed electric utilities to recover all costs of
interconnection
 Energy Policy Act of 2005
 Required consideration of Net Metering Policy for Larger
Utilities.
Net Metering
Net Metering
 42 States Have some form of Net Metering Law
 Nebraska—One of only 22 states to require net
metering through rural public power systems and
electric cooperatives
 Net Metering was not previously prohibited and
many utilities offered the service—not mandated
Net Metering
www.dsireusa.org / September 2009
ME: 660
WA: 100 co-ops & munis: 100
MT: 50* ND: 100* VT: 250
NH: 100
OR: 25/2,000* MN: 40 MI: 150*
MA: 60/1,000/2,000*
WY: 25* WI: 20* RI: 1,650/2,250/3,500*
IA: 500* IN: 10* CT: 2,000*
NV: 1,000* CO: no limit NE: 25 OH: no limit* NY: 25/500/2,000*
co-ops & munis: 10/25 IL: 40*
PA: 50/3,000/5,000*
UT: 25/2,000* WV: 25
KS: 25/200* NJ: 2,000*
MO: 100 KY: 30*
CA: 1,000* NC: 1,000* DE: 25/500/2,000*
NM: 80,000*
OK: 100* MD: 2,000
AZ: no limit* AR: 25/300 DC: 1,000
GA: 10/100 VA: 20/500*
LA: 25/300
HI: 100
KIUC: 50 FL: 2,000*
42 states & DC
State policy have adopted a
Voluntary utility program(s) only net metering policy
PR: 25/1,000
State policy applies to certain utility types only (e.g., investor-owned utilities)
*
Note: Numbers indicate system capacity limit in kW. Some state limits vary by customer type, technology and/or system application. Other limits might also apply.
LB 436
 Introduced by Senator Ken Haar in 2009
 Inclusive Process
 Compromise by all Sides
 Reasonable Legislation
 Establishes a Mandated Program for Net Metering
 Passed Feb 1, 2009 on a vote of 46-0
 Supported by the Nebraska Power Association
Members
LB 436—The Basics
 Net metering means a system of metering electricity
in which the distribution utility…
 Exchanges energy generated and energy used until the
customers bill is offset—retail for retail exchange or kilowatt
for kilowatt exchange—this is a 1:1 ratio
 Bills the customer at the retail rate for energy used beyond the
offset
 Credits the customer the avoided cost value for excess energy
delivered by the customer-generator
 Credits are carried over month to month and settled at the end of
the billing year
LB 436—The Basics
 A Distribution Utility Must Interconnect Qualified
Generation 25 kw and Smaller When it…
 Uses as its energy source
 Methane
 Wind
 Solar
 Biomass
 hydropower
 Geothermal
 Is controlled by the customer-generator and is located on
premises owned, leased or otherwise controlled by the
customer-generator
LB 436—The Basics
 Interconnects and operates in Parallel with the local
distribution system
 Is intended to meet or offset the customer-generator’s
requirements for electricity—sized to meet their need
 Not intended to offset or provide credits for electricity
consumption at another location or for another customer
LB 436—The Basics
 Meets all applicable safety, performance, interconnection and
reliability standards established by the National Electric Code,
National Electrical Safety Code, the Institute of Electrical and
Electronics Engineers, and the Underwriters Laboratories Inc.
 Is equipped to automatically isolate the generation from the
distribution system in the event of a power outage or when the
line is de-energized
 Satisfies an inspection by the State Electrical Division
LB 436—The Basics
 System Cap on Net Metering Customer Generators
 A distribution utility is not required to net meter additional
customers when the distribution systems total generating
capacity of all customer-generators is equal to or exceeds one
percent of the capacity necessary to meet the distribution
utility’s average aggregate customer monthly peak demand
forecast for the calendar year
LB 436—The Basics
 A distribution system may voluntarily agree
 To net meter qualified systems larger than 25 kw
 To compensate a customer at a rate higher than the avoided
cost
 To exceed the system cap
Inspection Specifics
 Must request a State Electrical Division inspection
prior to interconnection with the Local Distribution
Utility
 Fees for Inspection
 Most net metering systems $25 fee plus $5 for each circuit
 Large Systems $35 fee plus $5 for each circuit
Notification to the Local Distribution Utility
 Customer-generator is responsible for notifying the
distribution utility at least sixty days prior to the
installation of the qualified generation and intent to
interconnect
 Notification is not necessary for generation that is
not interconnected and not net metered
Interconnection Costs—Who Pays
 Customer Generator pays for costs incurred by the
local distribution system for equipment or services
required for interconnection that would not be
necessary if the QF were not interconnected—with
exception of the metering system
 Most often there is no additional cost for equipment
 Upgrade of distribution system or new build out
 Aid in construction policy of individual utility applies
Interconnection Costs—Who Pays
 Local Distribution Company pays for the cost of the
metering system necessary for net metering
 Single meter
 Two or three meters
 Smart meter
 Must be easily readable by the customer-generator
 Local Distribution Company may pay for additional
monitoring equipment for data gathering needs
Understanding Your Electric Bill
 Minimum monthly charge—all consumers in the same
rate class pay the same
 Meter reading, billing, other costs that are incurred regardless of the
amount of energy used by a customer
 Retail Rate Charge
 Distribution System Costs + Cost of Energy = Retail Rate
 Customer Generator uses more energy than they generate they are
billed at retail rate
 Sales Tax
 Revenue Department Ruling requires taxing on all energy delivered
to the consumer and not just the “net energy” or the energy the utility
bills the customer for.
 Credits
 Monetary credit at the avoided cost rate when a customer-generator
generates more energy than they use.
Understanding Your Electric Bill
 No additional standby, capacity, demand,
interconnection or other fees should be added to a
customer generators bill that are not part of the bill
for all customers in the same rate class.
Excess Generation
 Customer-generator generates more energy than
they use
 Excess energy is purchased by the electric utility and a credit is
placed on the billing statement
 Monetary credit based on the value of the energy at the time it
was generated
 Credits carry over month to month
 Credits at the end of the billing year will be paid out to the
consumer
 Credit is based on the avoided cost
Customer’s Additional Generation Needs
 Customer Generator uses more energy than they
generate
 Billed at the appropriate retail rate for their customer class
 May be offset by a previous months excess generation
Problems/Issues
 Interconnect without notice/inspection
 Visual Disconnect—IEEE Standard
 Insurance Requirements
 Meeting Specific Standards
 UL, CFA or Nationally Recognized Standards equal
to or greater than UL listing—Check with the State
Inspector
 Revenue Department Ruling on Sales Tax Collection
 County/City Zoning
Questions?
KRISTEN GOTTSCHALK
GOVERNMENT RELATIONS DIRECTOR
NEBRASKA RURAL ELECTRIC ASSOCIATION
kgottschalk@nrea.org